понедельник, 20 августа 2012 г.

Pussy Riot and the Magnitsky act: what's different?

Well, recently I saw a visit via a search request "Pussy riot magnitsky act". I wondered, what could be the relation of these two famous Russian cases? Anyway, I decided to provide some short explanation of these issues.

Magnitsky died in pretrial detention. He was placed there, because in the Russian justice, the prosecution office, the investigative comitee and the judge all prefer the defendant to be kept in custody before the trial. As I explained earlier, for the officials, this means less paperwork, more comfort at work and lower risk of getting into trouble if the defendant does not show up. Magnitsky's case was a criminal case. He was suspected of tax-evasion schemeing on a large scale. We will not discuss the scandal here in all detail, if you exuse me.

After Magnitsky died in pre-trial detention, there was a global scandal. So, the government passed several law corrections and introduced some legal guidances to make sure that people, suspected of economic crimes are not jailed before trial. It is still possible fo the investigative comitee to ask the judge to allow them to keep the defendant in custody, but now there are prescriptions in the law to disallow that.

Pussy Riot girls on the other hand were not suspected of economic crimes at all. Their case was viewed as a criminal one with the procecution pressing on the issue of "huliganism performed in an act of public demonstration of hatered to the Christian flock". Thus, they were not protected by the Post-Magnitsky case law corrections at all.

The Magnitsky case had a strong effect on the Russian legal system. No, nobody gives a damn about the "Magnitsky Act" in the US and the EU. The very idea of white-collar people dying in the awful prison conditions, while being cooperative to the investigators and not presenting a threat to the society hit too hard on the Russian public.

Back to the Pussy Riot case. I see lots of blaming towards the Russian court, saying that it must have paid attention to the Western media and Western rock stars. Well, this is Russia. The establishment is made up of people in their 50's. Their idea of the proper behaviour for Russia is "Be strong despite all odds, never bend to outside pressure". Thus, the more pressure - the more stubborn the system is. Naturally, with all the shouting, the judge could not have followed the Western pressure. Most people in their late 40's and 50's are happy, and they are the ones who make up most of economic and electoral majority.

Basically, Russia's main political problem is not with Pussy Riot. It is just that there is a too low percentage of young, ambitious population to add speed and passion to our life.

Comments appreciated. 

четверг, 16 августа 2012 г.

Pussy Riot - what's really happening?

Tomorrew we will see a verdict in the Pussy Riot trial. So, what has happened and what is going to happen? I will try to look at this situation without moralizing or switching to emotions.

The girls performed a 40 seconds long show inside Russia's main cathedral. Their act was quite shocking for the general public. Indeed, there were people, who wanted them punished. As there must have been people with influence, there was enough effort applied to the case to make it possible for the prosecution office to start working on filing a criminal case and for the investigation comitee to start "solving" this case. These actions can be launched against a person or a group in Russia as in any other civilized country by court order.

Why are they in jail? The Russian system prefers the defendant in a criminal case to stay in jail during the trial. This is a lot simplier for the prosecutors, the investigators and the judges. In terms of paperwork, workload and bureocratic formalities. Normally, the investigative agency requests that the defendants be kept in custody during the trial. The Magnitsky case has created a public outcry, which resulted in recommendations and law corrections, making people who are tried for economic crimes more likely to stay out of jail during the trial.

Why are they being tried and not set free? In any case, just or not, there is a criminal case against the three ladies. The Judge has to close the case down for them to be released.  Procedures are slow, so before the court hearings they were in detention so that the investigators could do their work. Now they are behind bars so that the judge can calmly write her decision down.

Will they be set free tomorrow? Very unlikely. Russian courts have around 0,7 percent case dismission rate. That does not mean few people go fee from court. Basically, their best chance would be to get a sentence equal to the time, served in pre-trial detention. A suspended sentence is likely, as well a real term howether. Why does not the judge say "We're sorry, now go!"? There are many formalities in the legal system. The judge is responsible for the paperwork logic of her job. Then, it is not the judicial system's interest to be detaining people for six months for nothing. This is why, already-served-in-detention terms are often used. This makes sure that the person has no right to request satisfaction from the government. Appeals are possible, but rare. Judges also have to submit a lot of paperwork after the case is closed. In case they drop all charges, they risk being subject to a corruption investigation right away.

What do Russians think of that? Well, there are many people, who want the girls to suffer. There are many of those who would rather see them free. What the Russians are dissatisfied with is the reaction from the outside world. Many now believe, it's just the pop stars getting a bit more press attention. Sure, does not help, but does irritate a bit.

What I think? Russia is a powerful enough player for the global establishment to respect its privacy. Forget it, gas prices, military stability and international trade are far more important then abstract illusions like "human rights", "gay rights" of just "freedom". The latter goes well with a claymore and a painted face, if you know what I mean....

среда, 15 августа 2012 г.

понедельник, 13 августа 2012 г.

Madonna in Russia - a reason to spit

Madonna has left, but there is still some lees in the air, as they say in Odessa.

I don't believe in the concept "Madonna fights fo human rights". Events with Pussy Riot seem to match a formulae: "A scandal + a 15 000 $ fine = 5 million bucks worth of PR.

Bye, Madonna!

How to import spare parts for vessels into Russia

I have heard, it may be a problem for a company, which owns a vessels to conduct the necesaary technical services because it is sometimes impossible to have spare parts delivered into Russia. The Customs service would not simply allow spae parts through, as we are a country with very strict customs rules. That means, every bit of cargo, recieved by a legal entity is subject to customs declaration by Russian rules. Complications are numerous. There are issues like the decision on the customs value of goods, which influences the ammount of fees to be paid. There also can be issues with the goods code, as customs officials may well decide to change it in order to increase the customs duty output. Corruption is seldom the case. Mostly, it is about the ship owners being unable to grasp all the aspects of the regulation.

I would advise caution:
1) If you plan on having the vessel repaired, either import the spare parts with the ship's cargo, or have them shipped to Russia in advance & find a Russian customs brokerage firm to help you through.

2) If the repairs are unexpected, have a customs brokerage firm import your spare parts fo you.

I will share contacts and recommendations upon request =)

четверг, 9 августа 2012 г.

Importing goods to Russia. Shallow waters and hidden reefs.


Working in Russia means dealing with uncertainty on a daily basis. Working with the Russian customs means swimming in  a shark tank in a suit made of bacon. Today I will write about some practicse which make importing into Russia harder. The Russian customs serves one major goal that is to deliver as much money to the budget as possible. So here are some risky points which you should keep in mind.


First of all, you should know, whether your goods require certain certificates. An attempt to import something, which requires a Russian certificate without having one is one wide road into trouble. Possible outcomes are a fine, followed by an order to proceed with a customs clearance procedure within 2 months, which if failed will automatically lead to a second administrative case, another fine and finally the liability to pay for the customs warehouse, which normally costs around 1 0cents per kilo a day.

It is wise to know the Customs control sums for your type of goods. These figures are the product of the Customs officials internal investigation, which makes them poorly related to the actual market situation. STill, if your price per kilo is lower then the required minimum, it may be adviszble to increase it by ordering more expensive transport etc. If your goods are too cheap, you are looking at a process, named the correction oof customs prices, which means the customs officials will decide  how much you owe on their own.

Zero customs duties. Goods with a zero customs duty are subject to extensive study. The whole idea of importing at zero duties is essentially against the main goal of the Customs. It is therefore a good idea to prepare as many papers as possible to support the claim for zero level customs duties and prepare for supply delays. It is likely that the Customs officials will attempt to rule for the change of the customs code in favor of the one with higher duty figures.

All these issues are easier to evade than to deal with. Generally if you are right and the customs official is wrong, the court will rule in your favor, but this won't take less than six months. Corruption is rarely the case, as Customs are strictly monitored and the officers follow instructions to the letter.

вторник, 7 августа 2012 г.

Some new stuff - online Master's

I am currently working on an entirely new thing for myself, that is I have joined a Master's programe in Global Marketing online.

There is a long and sad story with my higher education, which has stretched far too long. Well, anyway, here is my story.

I finished my BA in Sociology in my home city of St. Petersburg in 2009 and wanted a Master's ever since. I rejected sociology right away, took a look at the language studies, but finally decided to take up business. So in september 2010 I won a scolarship for the Master's in International Business at the St. Petersburg State Univercity's Graduate School of Management (GSOM). It is a great school for Russia, member of CEMS and PIM. Shortly, I got dropped after the first semester. Reasons, well...

First of all they told us not to work at all during study. Easier said then done. My mom, who runs the business I still work for said "no + 2 hours of brain washing about responsibility". So I decided to live in a mode of "full time study + work", which proved just great. My week looked somewhat like this:

Monday: Study 9-00-18:45
Tuesday: Study 9-00-13-30, work 14-30-21-00
Wednesday: Work 10-00 - 13-00, Study 13-40-18-45
Thirsday: Study 9-00-10-30, Work 11-30-20-00
Friday: Study 10-45 - 17-30
Saturday: Study 9-00 - 13-00, Work 14-00-18-00

The timetable varied from time to time, but generally looked close to this. The strangest thing was that I did actually manage my studies till November quite well, staying in the middle and catching top grades in the more humanitarian disciplines. The Russian system is built around a symester, ending in exam sessions. From mid-november to December 29th we had 12 exam sessions, which effectively sum up each of the courses, studied during the semester. The rule is simple. 3 failed exams mean automatic expulsion. To the honor of the institution, I found no back door. Hell, I did search! I failed:
- French (Spent the night before the exam at work till 23-30, the exam was at 9-00).
- Statistics (as I went to the exam test, the road was blocked for half an hour to pass an official's cortege). I came 30 minutes late, they just gave me the paper and tooked it not a second later than the deadline.  The corect course of action for this case would have been: hit my head against a wall, go to the clinic, get the paperwork certifying the injury's time and date, go th the univercity the next day and file for late submission. The rules are the rules.
- Corporate finance. I am just dumb at international corporate finance.

I am very anxious about my Master's degree, which I have taken online at the univercity of Liverpool. I hope it goes be